China holds U.S. debt for the first time in a year without floating

Economic observation Network reporter Sheng December 16, according to the U.S. Treasury 15th released the October International Capital Activity Report (TIC) data showed that as at the end of October, China held a total of 798.9 billion U.S. dollar Treasury bonds, and September data unchanged.　　For the first time in a month, China's holdings of U.S. debt did not fluctuate. According to the U.S. Treasury data, this year, in addition to the previous two months, China held a small increase in U.S. dollar holdings of US Treasuries (January USD 12.2 billion, February 4.6 billion U.S. dollars), March-September are presented a single month slightly overweight, two-month small reduction of volatility.　　March, May, July, our country increased holdings of U.S. Treasuries 23.7 billion U.S. dollars, 38 billion U.S. dollars and 24.1 billion U.S. dollars, while April, June, August, respectively, reduce U.S. Treasury bonds 4.4 billion U.S. dollars, 25.1 billion U.S. dollars and 3.4 billion U.S. dollars. Although October figures were flat in September, China is still the largest holder of US Treasuries, holding a total of $798.9 billion trillion, which accounts for nearly 22.84% of the U.S. Treasury debt.　　The second largest holder, Japan, held down 5 billion in October, holding a total of $746.5 billion trillion, with Britain ranking third and October slashing its $18.6 billion trillion, reducing its total holdings to $230.7 billion trillion. Industry analysts have warned that with the U.S. government debt and fiscal deficit rising, the U.S. fiscal deficit this year is over 10%, the cumulative fiscal deficit as a share of GDP is close to 100%. If the recovery is not satisfactory, the U.S. economy and U.S. government-backed Treasuries face a risk of downgrading.　　In other words, the National sovereign credit rating will be tested. It is worth noting that the crisis erupted in the Dubai in November. In December, Standard Poole warned of Greece's sovereign credit. After the downgrade of Greece's sovereign rating, the outlook for Portugal and Spain's sovereign credit rating was lowered by Standard Poole. Subsequently, the ECB also reported that Lithuania, Latvia and the Baltic states of Estonia could face a new debt crisis if they failed to take effective measures to reduce their fiscal deficits.　　Moody's also issued a warning about the rating of U.S. and British Treasuries: the risk of a downward adjustment from AAA's highest level.　　President of the Global Institute of Finance and Economics, song, author of currency wars, said in a recent media show that the sovereign credit crisis could lead to a new round of financial tsunami and trigger a domino-type ripple effect. Available data show that countries in the U.S. Treasury holdings structure recently shown as "short-term debt to buy long debt."　　After the adjustment, foreign investors in October net buy U.S. long-term securities 20.7 billion U.S. dollars, and net selling short-term securities 43.9 billion U.S. dollars. Zoshore, chief economist of Galaxy Securities, wrote that if US Treasuries Shenper, for China, holdings of US Treasuries, and other forms of sovereign debt in the form of large foreign exchange assets relative to other currencies, not only face a big devaluation, but if the problem worsens, the probability of a sharp depreciation of dollar assets will rise. Invest more in resources and reduce portfolio investment, including sovereign bonds. Make full use of the internationalAs a platform to promote the timely adjustment of the stimulus plan, try to avoid economic fluctuations, to ensure the safety of our overseas assets.